Topping up your forces pension

Discussion in 'Armed Forces Pension Scheme' started by Moon_Monkey_Spunk, Sep 2, 2007.

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  1. What are fellow arrses opinion on the stake holders pension? I'm looking at using the Scottish widows plan but the small print says people that earn over 30K cannot join this policy (I just creep over this amount!) Is my money better invested elsewhere?
  2. I'd suggest that you go to an IFA with this question. However, I believe that I can give you a few words of explanation without treading on any toes.

    The government set up stakeholder pensions as part of a shake up of financial services- stakeholder pensions have statutorily governed costs, access terms and normally limited investment options.

    Most of the major insurance companies have both stakeholder and non-stakeholder personal pension plans with similar, (but not the same), cost basis. Some even describe themselves as "stakeholder friendly", i.e. stakeholder costs but a slightly wider series of options, (often external funds and waiver of premium), with the pension provider potentially being able to raise or lower charges. (With a stakeholder plan, the charges have to follow the regulations). As a generalisation, the charging structure of a pension will have a significant effect on your final pension fund, so shop around. The FSA does offer some consumer advice on pensions on its web site, Financial Services Authority, and follow the "Making the Most of your Money" links

    As for which is best for you, talk to an IFA - giving specific advice on here will get me an interview without coffee. Try Links for IFAs in your area or, if desperate, PM me.
  3. Thanks for the advice Jeremy, much appreciated, heading towards a FSA now!
  4. Stakeholder plans are OK but offer limited investment choice.

    See an IFA, though.